The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed:

Required
1. Prepare a schedule of cost of goods manufactured in good form.
2. Prepare the cost of goods sold section of Mason Company’s statement of profit or loss for the year.

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Costs incurred: Direct labour cost Purchases of raw materials Indirect labour Maintenance, factory equipment Advertising expense Insurance, factory equipment Sales salaries Rent, factory facilities Supplies Depreciation, office equipment Depreciation, factory equipment Inventories: Raw materials Work in progress Finished goods Beginning of the Year £7,000 10,000 20,000 £70,000 118,000 30,000 6,000 90,000 800 50,000 20,000 4,200 3,000 19,000 End of the Year £15,000 5,000 35,000